Instructions for Sales & Use Tax Return

General Instructions                                              Line 1 – Gross Sales and Service.      Report all sales during
                                                                  the reporting period covered. Include all sales, whether or not
Purpose of Form                                                   taxable, including but not limited to, retail sales, wholesale
                                                                  sales, consignment sales, sales delivered outside the city,
                                                                  service sales, and rental and lease receipts.
This form is used for taxpayers to report sales and use tax
liabilities to the City of Commerce City.                         Line 2  –Bad Debts Collected; Total Gross Sales. 
Due Date                                                          A)             Enter the amount of bad debts deducted on
Sales & use tax returns must be filed on or before the 20 ofth             line 3D of this return or any previously filed return
                                                                           which were subsequently collected.
the month following the end of a reporting period, even if no
tax is due. Returns filed by mail must be US postmarked no        B)             Add line 2A to line 1 and enter the total on line
later than the 20 thof the month to be considered timely filed.
                                                                           2B.

Mailing Address for Returns                                       Line 3 – Deductions.
Mail completed tax returns with payment to:                       A)             Non-taxable Service Sales –   Enter the amount
                                                                           of separately stated service sales not subject to
Tax Division                                                               tax under the Code.
City of Commerce City
7887 E. 60 thAvenue                                               B)             Wholesales  –    Enter the amount of sales to
Commerce City, CO  80022-4199                                              licensed retailers, jobbers, dealers or wholesalers
                                                                           for resale. Sales by wholesalers to consumers
Amended Returns                                                            are not exempt. Sales to non-licensed retailers or
                                                                           wholesalers are not exempt. 
If you are amending a previously filed return, please print the
phrase  “AMENDED RETURN”            clearly in the upper right    C)             Out of City Sales –   Enter the amount of sales
corner. Make sure that the period covered and due date                     delivered to purchasers outside the City provided
match those of the original return. Complete the return with               that both of the following apply: (1) the sale is to a
the correct figures.                                                       purchaser who is a nonresident of Commerce
                                                                           City; and (2) delivery is made by common carrier,
Late Filing Charges                                                        conveyance of the seller, or by mail to a location
                                                                           outside the City.
Any tax not reported or paid by the due date is subject to a
10% penalty. Interest also accrues in whole month increments      D)             Bad Debts –   Enter the amount of previously
at a rate of established by the Colorado Banking Commission                reported taxable sales which were found to be
until the tax deficiency is paid.      Overpayments must be                worthless and were properly charged off for
accompanied by a signed Claim for Refund form.                             federal income tax purposes.

Reminders

Zero liability returns required. A return must be filed even if
no tax is due. Report the proper amount of sales and
deductions (including service sales) even if you made no          Retailers must be able to show clearly that the debts are
taxable sales. All businesses, including those that do not        worthless. Further, receivables sold to and sales financed by
make taxable sales, will likely have a use tax liability.         persons other than the taxpayer are not eligible for bad debt
                                                                  tax recoveries.
Verify the reporting period and due date. Please check the
return form to ensure you are using the return which              E)             Trade-ins – Enter the fair market value of
corresponds with the reporting period for which you are filing.            property exchanged at the time of the sale that
If you have misplaced the required return, you may obtain a                will be sold thereafter in the usual course of your
blank return on the City website or contact the Tax Division for           business.
a replacement.
                                                                  F)             Gasoline and Cigarettes –   Enter the amount of
Do not attach enclosures.    Mail the completed and signed                 sales of exempt motor fuel and cigarettes. Note
return in the envelope provided. Do not staple the check or                that certain special fuels, cigars, and other
other attachments to the return.                                           tobacco products are not exempt from tax.

Signature required.        The person completing the return on    G)             Government,      religious,   and        charitable
behalf of the taxpayer must sign and date the form at the                  organizations   – Enter the amount of qualifying
bottom. If the taxpayer is not a natural person, the title of the          sales to the United States; the State of Colorado;
officer or agent completing the form on behalf of the taxpayer             its     departments,      institutions,  and   political
must be printed on the form.                                               subdivisions;          and    approved         charitable
                                                                           organizations billed to and paid for directly by the
                                                                           agency or organization. 
Specific Instructions
                                                                  H)             Returned Goods      – List the amount of taxable
                                                                           sales returned by the purchaser when the price

Instructions for Sales & Use Tax Return                                                                               Page 2

          and the tax collected were refunded in cash or by
          credit.                                                   Line 12 – Penalty & Interest for Late Filing.     If this return
                                                                    and/or payment of the tax computed herein will not be
I)       Sales of Groceries / Non-Prepared Foods       –   List the postmarked on or before the due date, penalty and interest
          amount of qualifying sales of groceries and non-          charges will apply. Penalty is 10% of the tax. 
          prepared foods.
                                                                    Interest is calculated for each month or a portion of a month
J)        Prescription Drugs; Prosthetic Devices –         List the that a tax deficiency remains unpaid. Interest accrues in whole
          amount of qualifying sales of prescription drugs          month increments.
          and prosthetic devices.
                                                                    Line 13 – Total Tax, Penalty & Interest Due. Add line 12 to
                                                                    line 11 and enter the total on line 13.
K)        Other   Deductions   –        List other     allowable
          deductions or exemptions not covered on lines             Line 14 – Adjustment Prior Periods. Attach a copy of the No
          3A through 3L. List a description of the amount           tice of Final Determination – Assessment       –  Demand for
          deducted on the space provided.                           Payment and make the appropriate adjustment.

          Most                allowable             deductions      Line 15 – Total Due and Payable. Enter the amount listed on
          are covered on lines 3A through 3K. Taxpayers are         line 13 after making the appropriate adjustments from line 14
          encouraged to contact the Tax Division prior to           and enter that amount on line 15. This is the total due. Make
          listing other    deductions   to   avoid  improperly      check or money order payable to City of Commerce City.
          deducting taxable sales. Note that retailers are
responsible for the proper collection and payment of tax and        Signature –  After reviewing the form for accuracy, sign the
will be liable for improper exemptions.                             form on the lower right of the reverse side. Print the company
                                                                    name if completed by a paid preparer. Print the phone number
Total Deductions  – Add together lines 3A through 3K and            of the individual who completed the return. Print the title of the
enter the total on line 3.                                          person who completed the return and the date it was
                                                                    completed.
Line 4 –  Net Taxable Sales and Service.     Subtract line 3
from line 2B and enter the difference on line 4. This is the        Schedule A – Special Messages
amount of taxable sales and service.
                                                                    Taxpayers needing to notify the Tax Division of certain
Line 5 –  City Sales Tax.     Multiply line 4 by the applicable     account changes may complete Schedule A.          Specifically,
sales tax rate listed on line 5. Enter the amount on line 5.        changes of address or ownership and business closure may
                                                                    be reported. 
Line 6 – Excess Tax Collected. If the City sales tax collected
exceeds the tax computed on line 5, subtract the amount             Business Closure
listed on line 5 from the total City sales tax collected and enter
the difference on line 6. Sales taxes are held in trust by the      Taxpayers who are no longer engaged in business in the City,
retailer and must be turned over to the City even if they were      or at the location specific to this return, should check the first
collected in error. Do not include other home-rule city, state,     line under Schedule A on the front of the return. 
and other state collected taxes in this computation.
                                                                    Indicate the date of closure on the reverse side in the lower
Line 7 – Adjusted City Tax. Add line 6 to line 5 and enter the      left under Discontinued Date. A final sales and use tax return
total on line 7.                                                    must be filed through the date of closure within 10 days.

Line 8 – Vendor Fee. If the tax due for this reporting period       Taxpayers    filing consolidated returns must     include     a
will be reported and paid by the due date, compute the              supplement listing the account number and address of each
vendors fee on line 8 as follows: Enter 2% of line 7 or up to a     location closed along with the location’s actual closure date.
maximum allowed of $100. Vendors fees not deducted at the
time of filing are forfeited.                                       Business Acquisition/Change in Form
          Consolidated filers are permitted to deduct up to the     Sales and use tax licenses are not transferrable from one
          maximum collection fee for each account even              taxpayer to another. Similarly, certain changes in form also
          though they are only filing a single return.              require the issuance of a new license. For example, a sole
                                                                    proprietorship that becomes a corporation will be issued a
                                                                    new license. The corporation must file a license application
Line 9 –  Total Sales Tax.    Subtract line 8 from line 7 and       with the Tax Division. 
enter the total on line 9. This is the total sales tax due.
                                                                    Taxpayers who sell out their business, or purchase another,
Line 10 – City Use Tax. Enter the total purchases subject to        have specific responsibilities to ensure taxes are properly
use tax in the space provided. You may compute this amount          paid. Some sales, such as stock transfers, will not require a
on Schedule B (see below). Compute the use tax due by               change. 
multiplying this amount by the City use tax rate listed on line
10. Enter the result on line 10.  This is the total use tax due.    Taxpayers who have sold or changed their business should
                                                                    check the first line under Schedule A on the front of the return.
Line 11 – Total Tax Due. Add the total use tax due on line 10       Indicate the effective date closure on the reverse side in the
to the total sales tax due on line 9. This is the total tax due.    lower left under New Business Date. A final sales and use tax

Instructions for Sales & Use Tax Return                                       Page 3

return must be filed through the date of closure within 10     line B. Enter this total in the space on line 10 for purchases
days.                                                          subject to tax.

List the name and address of the new owner in the center box
on the reverse side. The new owner must apply for a license
with the Tax Division.

Change of Address
Keeping your address and contact information current is
important for ensuring you receive forms and notices from the
Tax Division in a timely fashion. 

Taxpayers needing to update address information should
check the second line Schedule A on the front of the return
and print the new address in the center box on the reverse
side. Indicate which address is being changed by checking
the appropriate box.

Additional account information can be changed by sending the
updated information in writing to the Tax Division. Please
include the City of Commerce City account number on all
correspondence.

Taxpayers locating within the City are encouraged to apply in
advance to ensure their new location is approved for their
proposed use.

Schedule B – City Use Tax

General Information

The Commerce City Sales & Use Tax Code        imposes a use
tax upon the privilege of using, storing, distributing or
otherwise consuming tangible personal property or taxable
services in the City. If Commerce City sales tax is not paid to
a vendor licensed and authorized to collect the same, then a
use tax must be remitted directly to the City.

Credit may be taken against Commerce City use tax for
legally imposed sales or use taxes previously paid to other
municipalities. Such credit may not exceed the Commerce
City use tax due.

Even businesses that do not make taxable sales will likely
have a use tax liability. 

Specific Instructions

This Schedule B is optional and may be used to compute the
total taxable purchases to be listed on line 10. Taxpayers are
encouraged to complete Schedule B and maintain similar
records of taxable purchases as evidence of remittance on
specific transactions. 

Additional schedules in the same format can be submitted
with the return. Supplemental schedules must be 8 ½” by 11”
in size and may be printed on both sides on white paper. Do
not shade in any of the spaces. Do not staple supplemental
schedules to the return. Schedules not conforming to these
requirements will not be retained in City records.

For each taxable purchase, list the purchase date, the name
of the vendor, a general description of the commodity
purchased, and the taxable purchase price. Do not include
non-taxable items in the purchase price.

At the bottom of the schedule, total the taxable purchases on